(a) whether the industrial output has fallen during the last twenty months;
(b) if so, the reasons therefor, sector-wise;
(c) the likely impact of such declining industrial output on economic growth and inflation;
(d) whether the industrial growth rate has not been consistent in the recent past;
(e) if so, the details thereof during the last three years, month-wise and the reasons therefor; and
(f) the corrective steps to be taken by the Government to boost the industrial growth?
MINISTER OF THE STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI ANAND SHARMA)
(a) to (f) : A statement is laid on the Table of the House.
Statement referred to in reply to parts (a) to (f) of the Lok Sabha Starred question No.143
for answer on 7th March, 2011 regarding “industrial outputâ€.
(a), (b), (d) and (e): The industrial growth, measured in terms of the Index of Industrial Production
(IIP) continued to fluctuate in last three years. Overall growth decelerated to 3.2 percent in 2008-09
because of global economic meltdown. Timely intervention by government by way of appropriate monetary
and fiscal policies resulted in a sharp recovery and overall industrial growth improved to 10.5 percent
in 2009-10. In the current year so far, overall growth at 8.6 percent in April-December 2010 is aligned
to the growth achieved in corresponding period of 2009.
Overall industrial growth remained moderate in September, November and December in the current year.
Moderation in the IIP growth in September and December was on account of a negative growth in capital
goods. Near stagnation of the production of consumer non durable goods also affected the overall industrial
performance. Month wise sectoral growth of IIP is at Annexure.
(c): Industrial sector (covering mining, manufacturing and electricity) has a share of 20 percent in GDP.
A moderation in industrial growth therefore affects GDP growth proportionate to its share in GDP. Though
a slower industrial growth results in lower availability of industrial products, there is no direct
correlation between a slower growth and inflation.
(f): The major focus areas for improving the industrial climate during the 11th Plan and in the Union Budgets
have been the promotion and facilitation of industrial investment including the foreign direct investment;
improvement in business environment; development of industrial and other infrastructure through public
private initiatives; incentivizing research and development; and development of industry relevant skills.